Legislature(2011 - 2012)CAPITOL 106

03/21/2011 08:00 AM EDUCATION


Download Mp3. <- Right click and save file as

Audio Topic
08:05:20 AM Start
08:06:07 AM Presentation: Northwest Arctic School District Superintendent
08:34:25 AM HB104
09:59:10 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation by Northwest Arctic School District TELECONFERENCED
Superintendent
+= HB 104 ALASKA PERFORMANCE SCHOLARSHIPS TELECONFERENCED
Moved CSHB 104(EDC) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
             HB 104-ALASKA PERFORMANCE SCHOLARSHIPS                                                                         
                                                                                                                                
8:34:25 AM                                                                                                                    
                                                                                                                                
CHAIR DICK  announced that the  final order of business  would be                                                               
HOUSE  BILL NO.  104,  "An Act  renaming  the Alaska  performance                                                               
scholarship  and  relating to  the  scholarship  and tax  credits                                                               
applicable to contributions to  the scholarship; establishing the                                                               
Alaska  performance scholarship  investment fund  and the  Alaska                                                               
performance  scholarship award  fund and  relating to  the funds;                                                               
making  conforming amendments;  and  providing  for an  effective                                                               
date."  [In front of the committee was Version I of the bill.]                                                                  
                                                                                                                                
8:35:23 AM                                                                                                                    
                                                                                                                                
CHAIR DICK closed public testimony.                                                                                             
                                                                                                                                
8:35:49 AM                                                                                                                    
                                                                                                                                
CHAIR  DICK  stated his  understanding  that  the bill  had  been                                                               
fashioned  around the  recommendations  of  the scholarship  task                                                               
force.   He  directed  attention  to the  five  amendments to  be                                                               
proposed, and  noted that  each of these  suggested removal  of a                                                               
portion of  the proposed  committee substitute.   He  stated that                                                               
each proposed amendment would be discussed individually.                                                                        
                                                                                                                                
8:38:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRUITT moved  to adopt  Amendment 1,  labeled 27-                                                               
GH1893\I.4, Mischel, 3/17/11, which read:                                                                                       
                                                                                                                                
     Page 6, line 16:                                                                                                           
          Delete "AS 37.14.750(d)"                                                                                              
          Insert "AS 37.14.750(c)"                                                                                              
                                                                                                                                
     Page 6, line 18, following "scholarships":                                                                                 
          Insert "and grants"                                                                                                   
                                                                                                                                
     Page 8, lines 15 - 18:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
     Page 8, line 28:                                                                                                           
          Delete "(d)"                                                                                                          
          Insert "(c)"                                                                                                          
                                                                                                                                
     Page 10, line 21:                                                                                                          
          Delete "AS 37.14.750(d)"                                                                                              
          Insert "AS 37.14.750(c)"                                                                                              
                                                                                                                                
REPRESENTATIVE P. WILSON objected for discussion.                                                                               
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
REPRESENTATIVE  P.   WILSON  stated  her  support   for  proposed                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
8:41:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  explained that  the revenue  sharing model                                                               
in the bill  had been adopted because there was  no consensus for                                                               
a large,  separate, defined  endowment fund.   He noted  that the                                                               
municipal   revenue   sharing   model   used   "20   percent   of                                                               
progressivity  as a  mechanism for  funding, so  that's the  only                                                               
reason  why it's  in here."   He  reported that  some task  force                                                               
members had desired to tie  state oil revenue to the scholarship,                                                               
so  that   scholarship  recipients  would  understand   that  the                                                               
scholarship was tied to the  state's non-renewable resources.  If                                                               
the legislature  could appropriate  funding each year,  then this                                                               
would not be necessary.                                                                                                         
                                                                                                                                
8:43:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA offered her belief  that this was a finance                                                               
issue, and expressed her concern for a source of funding.                                                                       
                                                                                                                                
8:44:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRUITT, referring to Version  I, page 8, lines 11-                                                               
13, pointed out that there were other means for funding.                                                                        
                                                                                                                                
8:44:59 AM                                                                                                                    
                                                                                                                                
CHAIR DICK opined  that progressivity as a  mechanism for funding                                                               
could hinder passage of the bill,  and he offered his support for                                                               
proposed Amendment 1.                                                                                                           
                                                                                                                                
8:45:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON removed her objection.                                                                                 
                                                                                                                                
8:45:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE  objected,  and  then  upon  consideration,                                                               
removed  his  objection.    There  being  no  further  objection,                                                               
Amendment 1 was adopted.                                                                                                        
                                                                                                                                
8:47:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRUITT moved to adopt Amendment 2, labeled 27-                                                                   
GH1893\I.2, Mischel, 3/17/11, which read:                                                                                       
                                                                                                                                
     Page 5, line 4:                                                                                                            
          Delete "[IS]"                                                                                                         
          Insert "is"                                                                                                           
                                                                                                                                
     Page 5, line 5:                                                                                                            
          Delete "is"                                                                                                       
                                                                                                                                
     Page 5, line 6:                                                                                                            
          Delete "[AND]"                                                                                                        
          Insert "and"                                                                                                          
                                                                                                                                
     Page 5, line 7:                                                                                                            
          Delete "is"                                                                                                       
                                                                                                                                
     Page 5, lines 8 - 13:                                                                                                      
          Delete all material.                                                                                                  
                                                                                                                                
     Page 5, lines 15 - 16:                                                                                                     
          Delete "meets the standards established in                                                                        
     (a)(1)(C) and (D) of this section and that"                                                                            
                                                                                                                                
     Page 11, lines 14 - 15:                                                                                                    
          Delete ", AS 14.43.830(a)(1)(C) and (D), added by                                                                     
            sec. 7 of this Act, and the amendment to                                                                            
     AS 14.43.830(a)(2) made by sec. 7 of this Act take "                                                                       
          Insert "takes"                                                                                                        
                                                                                                                                
8:47:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON objected for discussion.                                                                               
                                                                                                                                
8:47:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON, directing attention  to Version I, page 5,                                                               
lines  8-13,  said  that  the  task force  had  agreed  that  the                                                               
advisory program  at participating schools ensured  that students                                                               
had every  opportunity to complete  a timely course of  study and                                                               
that the schools would offer the courses appropriately.                                                                         
                                                                                                                                
8:51:02 AM                                                                                                                    
                                                                                                                                
DIANE BARRANS, Executive Director, Postsecondary Education                                                                      
Commission, Department of Education and Early Development (EED),                                                                
stated her agreement with Representative Seaton.                                                                                
                                                                                                                                
8:51:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON advised that the committee not adopt                                                                      
proposed Amendment 2 as completion of a degree was the goal.                                                                    
                                                                                                                                
8:51:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON opined that the university should offer                                                                
the necessary courses in a timely manner.                                                                                       
                                                                                                                                
8:52:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked to clarify that Representative P.                                                                   
Wilson supported the requirements in the bill, and objected to                                                                  
proposed Amendment 2.                                                                                                           
                                                                                                                                
8:53:06 AM                                                                                                                    
                                                                                                                                
A roll call vote was taken.  Representatives Cissna, P. Wilson,                                                                 
Seaton, Feige, Pruitt, and Dick voted against Amendment 2.                                                                      
Therefore, Amendment 2 failed by a vote of 0-6.                                                                                 
                                                                                                                                
8:54:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRUITT moved to adopt Amendment 3, labeled 27-                                                                   
GH1893\I.1, Mischel, 3/17/11, which read:                                                                                       
                                                                                                                                
     Page 1, lines 4 - 5:                                                                                                       
          Delete "relating to an unmet need scholarship                                                                       
    supplement    for   Alaska    performance   scholarship                                                                   
     recipients;"                                                                                                             
                                                                                                                                
     Page 3, line 27, through page 4, line 30:                                                                                  
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 11, line 13:                                                                                                          
          Delete "Section 19"                                                                                                   
          Insert "Section 18"                                                                                                   
                                                                                                                                
     Page 11, lines 14 - 15:                                                                                                    
          Delete all material and insert:                                                                                       
        "* Sec. 21. AS 14.43.830(a)(1)(C)  and (D), added by                                                                
     sec.   6   of   this   Act,  and   the   amendment   to                                                                    
     AS 14.43.830(a)(2)  made by  sec.  6 of  this Act  take                                                                    
     effect July 1, 2012."                                                                                                      
                                                                                                                                
     Page 11, line 16:                                                                                                          
          Delete "Section 15"                                                                                                   
          Insert "Section 14"                                                                                                   
                                                                                                                                
     Page 11, line 17:                                                                                                          
          Delete "secs. 21 - 23"                                                                                                
          Insert "secs. 20 - 22"                                                                                                
                                                                                                                                
REPRESENTATIVE P. WILSON objected for discussion.                                                                               
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
8:55:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   explained  that  proposed   Amendment  3                                                               
referred  to   the  dedicated  needs   based  component   of  the                                                               
scholarship program.   He reported that should  a student qualify                                                               
for the  Alaska Performance Scholarship, but  has unmet financial                                                               
needs  after the  $2000 work  component, the  state would  pay 50                                                               
percent of  the remaining unmet  financial needs.  He  noted that                                                               
this was based  on the 2010 cap on tuition  costs.  He emphasized                                                               
that Alaska offered the lowest  financial support to lower income                                                               
students of any state.                                                                                                          
                                                                                                                                
8:58:26 AM                                                                                                                    
                                                                                                                                
MS.  BARRANS  declared that  EED  endorsed  a simpler  method  to                                                               
ensure  that the  existing needs  based  program, in  combination                                                               
with federal  aid, would make  "a meaningful difference  to those                                                               
students and is the best approach going forward."                                                                               
                                                                                                                                
8:59:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRUITT concurred  with  Ms.  Barrans, and  stated                                                               
that  the intent  of the  bill was  to focus  on the  performance                                                               
aspect.   He opined that  the amendment  did not negate  the fact                                                               
that financial needs existed, but  that combining the performance                                                               
base  and the  financial need  tended to  muddy the  waters.   He                                                               
pointed  to the  AlaskAdvantage program  as one  of the  programs                                                               
which offered financial aid.                                                                                                    
                                                                                                                                
9:00:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  explained his  concern for support  of the                                                               
amendment, emphasizing that  the AlaskAdvantage program currently                                                               
targeted non-traditional  students.   He observed  that targeting                                                               
both non-traditional  students and students just  graduating from                                                               
high  school   using  the  same  criteria   would  be  "extremely                                                               
difficult  [and]  this  is  why   we  weren't  able  to  do  non-                                                               
traditional  students when  we devised  the program  in the  last                                                               
legislature."  He  stated that combining the  programs offered no                                                               
assurance  to  new graduates  who  had  achieved the  scholarship                                                               
award   but  required   financial   assistance   to  meet   their                                                               
educational goals, as the financial  aid was first offered to the                                                               
neediest,  who were  usually  the  non-traditional students  with                                                               
families.   He opined  that the  AlaskAdvantage program  would be                                                               
stretched  in  two  different  directions and  it  did  not  seem                                                               
plausible  that  it  could  cover  the  needs.    He  stated  his                                                               
opposition to proposed Amendment 3.                                                                                             
                                                                                                                                
9:04:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON offered her  belief that Version I would                                                               
take financial aid  away from the non-traditional  students.  She                                                               
asked if students that qualified  for the performance scholarship                                                               
would also qualify for financial aid, dependent on the funding.                                                                 
                                                                                                                                
9:05:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON,  in  response,  said  that  it  would  be                                                               
possible,  but  that  the  qualifications   and  funding  to  the                                                               
AlaskAdvantage program  were specified in  the bill.   He pointed                                                               
out that  proposed Amendment  3 would place  all the  needs based                                                               
funding "in one pot," with  no assurance to the merit scholarship                                                               
recipients for  any funding.   He  noted that  the AlaskAdvantage                                                               
program had been traditionally underfunded.                                                                                     
                                                                                                                                
9:06:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRUITT   stated  his  concern  for   keeping  the                                                               
scholarship and  financial aid  grouped together  as it  would be                                                               
the same pool of money for both.                                                                                                
                                                                                                                                
9:07:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE  stated that there  were two issues:   award                                                               
students  for   performing  at  a   high  level  in   a  rigorous                                                               
curriculum, and  provide educational  financial aid to  those who                                                               
could not afford  it.  He opined that these  were separate issues                                                               
that should  be kept in  separate programs, and he  expressed his                                                               
support for proposed Amendment 3.                                                                                               
                                                                                                                                
9:08:10 AM                                                                                                                    
                                                                                                                                
CHAIR  DICK reflected  on the  message of  the original  bill, to                                                               
encourage educational  excellence.  He opined  that having recent                                                               
high  school  graduates  compete  for  financial  aid  with  non-                                                               
traditional students  was a  problem, as  those criteria  had not                                                               
yet  been defined.   He  stated  his confidence  in the  guidance                                                               
received from Ms. Barrans.                                                                                                      
                                                                                                                                
MS. BARRANS stated  that the AlaskAdvantage grant  program had an                                                               
existing  priority consideration  for  two  areas, high  academic                                                               
achievement  and  student   enrollment  in  identified  workforce                                                               
shortage areas.   She reported  that historic annual  funding for                                                               
the program  had ranged from $600,000  to $1.9 million.   At this                                                               
high funding  point, 26 percent  of the recipients were  22 years                                                               
of  age  or younger,  which,  she  stated, better  reflected  the                                                               
student  body.   She offered  her  belief that  the two  programs                                                               
could  work successfully  together,  but that  separation of  the                                                               
merits and needs based programs provided greater clarity.                                                                       
                                                                                                                                
9:11:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON,  pointing to  the fiscal note  for Version                                                               
I,   indicated   that   the  $10   million   budgeted   for   the                                                               
AlaskAdvantage program would  not cover the need  or the proposed                                                               
goals.  He asked which students would have reduced benefit.                                                                     
                                                                                                                                
9:14:16 AM                                                                                                                    
                                                                                                                                
MS. BARRANS reported that Version  I allowed a 25 percent greater                                                               
award  under the  supplemental needs  program  than the  existing                                                               
grant program, an increase to $4,000 per year.                                                                                  
                                                                                                                                
9:15:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  asked   for  an  explanation  to  the                                                               
proposed fiscal note.                                                                                                           
                                                                                                                                
MS. BARRANS,  in response to Representative  P. Wilson, explained                                                               
that  AEG   signified  AlaskAdvantage   Education  Grant.     She                                                               
explained that the fiscal analysis  was for the component cost of                                                               
the new  supplemental aid program  and for the estimated  cost of                                                               
full funding for AEG.                                                                                                           
                                                                                                                                
9:16:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON asked for a definition of full funding.                                                                
                                                                                                                                
MS. BARRANS,  in response to Representative  P. Wilson, explained                                                               
that full  funding was  an estimate of  money available  to award                                                               
every student the maximum allowed.   She pointed out that she had                                                               
not  been  informed to  the  intent  for percentage  of  funding,                                                               
whether it  would be  50 percent  or 100  percent.   She reported                                                               
that she used the rate  calculations from the prior year's fiscal                                                               
note, which  presumed that  29 percent  of high  school graduates                                                               
would be  eligible for and  use the performance scholarship.   To                                                               
arrive  at   an  average  supplemental   award,  she   based  the                                                               
calculation on the number of  2010 high school graduates who went                                                               
on to  post secondary education  at the University of  Alaska and                                                               
their  average  unmet need,  and  she  used  the formula  in  the                                                               
proposed committee substitute, Version  I.  This formula utilized                                                               
the  cost of  education,  less the  family  contribution and  the                                                               
$2000  work/self  help contribution,  with  the  State of  Alaska                                                               
contributing 50 percent  of the remaining cost.   She pointed out                                                               
that  a segment  of  Version  I would  not  be implemented  until                                                               
FY2013  in order  to  allow the  development  of regulations  and                                                               
calculations for the needs based  supplement.  She noted that the                                                               
current estimate  of $6.9  million for full  funding was  used in                                                               
the fiscal note.                                                                                                                
                                                                                                                                
9:19:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON asked if it  would take EED two years to                                                               
develop the regulations.                                                                                                        
                                                                                                                                
MS. BARRANS, in response, said  the regulations would be in place                                                               
in  July, 2012,  but that  "the bigger  picture issue  for us  is                                                               
putting  the programming  in place."   She  reflected that,  upon                                                               
passage of  the bill  in the prior  year, EED  aggressively begun                                                               
work  on  very   sophisticated,  complex  scholarship  management                                                               
software, in  lieu of  hiring more  staff, and  that it  was very                                                               
close  to implementation.   She  opined that  any changes  to the                                                               
software would take time to implement.                                                                                          
                                                                                                                                
9:21:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  asked if  students could  qualify this                                                               
year.                                                                                                                           
                                                                                                                                
MS.  BARRANS  replied  that  this   delay  only  applied  to  the                                                               
supplemental needs aspect, as required  in Version I.  She stated                                                               
that the merit scholarship would be available.                                                                                  
                                                                                                                                
9:22:07 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 9:22 a.m. to 9:24 a.m.                                                                       
                                                                                                                                
9:24:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON removed her objection.                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON objected.                                                                                                 
                                                                                                                                
9:25:35 AM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representatives  Pruitt, P. Wilson,                                                               
Feige, and Dick  voted in favor of Amendment  3.  Representatives                                                               
Cissna and Seaton  voted against it.  Therefore,  Amendment 3 was                                                               
adopted by a vote of 4-2.                                                                                                       
                                                                                                                                
9:26:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRUITT moved to adopt Amendment 4, labeled 27-                                                                   
GH1893\I.3, which read:                                                                                                         
                                                                                                                                
     Page 1, lines 5 - 6:                                                                                                       
          Delete "repealing the Alaska capital income                                                                         
     fund;"                                                                                                                   
                                                                                                                                
     Page 6, line 25, through page 7, line 31:                                                                                  
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 8, line 12, following ";":                                                                                            
          Insert "and"                                                                                                          
                                                                                                                                
     Page 8, line 13:                                                                                                           
          Delete "; and"                                                                                                        
          Insert "."                                                                                                            
                                                                                                                                
     Page 8, line 14:                                                                                                           
          Delete all material.                                                                                                  
                                                                                                                                
     Page 10, line 16:                                                                                                          
          Delete all material.                                                                                                  
                                                                                                                                
     Page 10, line 20:                                                                                                          
          Delete "(a)"                                                                                                          
                                                                                                                                
     Page 10, lines 25 - 28:                                                                                                    
          Delete all material.                                                                                                  
                                                                                                                                
     Page 11, line 13:                                                                                                          
          Delete "Section 19"                                                                                                   
          Insert "Section 16"                                                                                                   
                                                                                                                                
     Page 11, line 16:                                                                                                          
          Delete "Section 15"                                                                                                   
          Insert "Section 13"                                                                                                   
                                                                                                                                
     Page 11, line 17:                                                                                                          
          Delete "secs. 21 - 23"                                                                                                
          Insert "secs. 18 - 20"                                                                                                
                                                                                                                                
9:28:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON objected for discussion.                                                                               
                                                                                                                                
9:28:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  relayed that  the task force  had reviewed                                                               
funding sources,  as general funds  were determined not to  be an                                                               
effective source.  He identified the  Amerada Hess fund as a long                                                               
term potential  source for at  least half the  necessary funding,                                                               
which would  reduce the amount  required to be  appropriated from                                                               
the  general fund.    He reported  that the  $52  million in  the                                                               
Amerada Hess fund would also allow for initial funding.                                                                         
                                                                                                                                
9:31:05 AM                                                                                                                    
                                                                                                                                
MS.  BARRANS  observed  that  this  was one  of  the  four  final                                                               
recommendations from the  task force.  She  expressed concern for                                                               
the  predictability of  funding  from the  Amerada Hess  account.                                                               
She shared  that the  task force had  searched for  a sustainable                                                               
and predictable funding source, as requested by the governor.                                                                   
                                                                                                                                
9:32:29 AM                                                                                                                    
                                                                                                                                
JERRY   BURNETT,   Deputy    Commissioner,   Treasury   Division,                                                               
Department  of  Revenue, explained  that  the  Amerada Hess  fund                                                               
payout  was based  on realized  earnings of  the permanent  fund,                                                               
which had  a "tremendous variability."   He established  that the                                                               
funding  source  should have  a  steady  stream  to allow  for  a                                                               
percent of  market value (POMV)  payout every year.   He reported                                                               
that  the Amerada  Hess  fund  was subject  to  market whims  and                                                               
investment decisions.                                                                                                           
                                                                                                                                
9:34:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON reported that  the task force had attempted                                                               
to identify a  diversity of funding for  the scholarship program.                                                               
He  pointed to  the progressivity  funding and  the Amerada  Hess                                                               
funding as two examples.  He  explained that a designated fund of                                                               
$600  million  would  provide  a  stable  source,  but  that  the                                                               
legislature  had  not  been  willing   to  appropriate  for  this                                                               
purpose.  He agreed that the  Amerada Hess fund was not necessary                                                               
as a  revenue source, as long  as the legislature was  willing to                                                               
address other funding  sources.  Given the  reluctance, he agreed                                                               
that it could be removed from the proposed bill.                                                                                
                                                                                                                                
9:38:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON,  recalling her work on  the task force,                                                               
stated  that  a specific  fund  had  not  been identified.    She                                                               
expressed her concern,  should a specific fund  be designated but                                                               
not  provide  adequate  funding, that  legislators  may  overlook                                                               
additional  funding, and  she announced  her support  of proposed                                                               
Amendment 4.                                                                                                                    
                                                                                                                                
9:39:28 AM                                                                                                                    
                                                                                                                                
MR. BURNETT, in  response to Chair Dick, declared  that a funding                                                               
source  would  need to  be  identified.    He declared  that  the                                                               
Amerada  Hess  fund  would  not necessarily  be  stable,  but  he                                                               
declined to offer an alternative.                                                                                               
                                                                                                                                
9:40:23 AM                                                                                                                    
                                                                                                                                
CHAIR  DICK expressed  the difficulty  for  determining a  steady                                                               
funding source.                                                                                                                 
                                                                                                                                
9:40:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CISSNA   established   that  funding   must   be                                                               
identified  in order  for  this  to pass  the  legislature.   She                                                               
opined that the fluctuations in oil  and gas prices always had an                                                               
effect  on  finances.    She   suggested  that  funding  for  the                                                               
scholarships could  always be found  through budgeting,  and that                                                               
the Amerada Hess fund could provide a financial base.                                                                           
                                                                                                                                
9:42:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON  removed her objection.   There being no                                                               
further objection, Amendment 4 was adopted.                                                                                     
                                                                                                                                
9:42:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRUITT moved  to adopt  Amendment 5,  labeled 27-                                                               
GH1893\I.5, Mischel, 3/17/11, which read:                                                                                       
                                                                                                                                
     Page 6, lines 16 - 18:                                                                                                     
          Delete     "The     amount    determined     under                                                                    
     AS 37.14.750(d)  each  year   and  deposited  into  the                                                                    
     account is the  maximum amount that may be  used to pay                                                                    
     scholarships  for  the  immediately  succeeding  fiscal                                                                    
     year."                                                                                                                     
                                                                                                                                
     Page 8, line 19, through page 9, line 2:                                                                                   
          Delete all material.                                                                                                  
                                                                                                                                
     Page 10, lines 20 - 24:                                                                                                    
          Delete "(a) Notwithstanding the $40,000,000 limit                                                                     
        in AS 37.14.750(d), the following amounts may be                                                                        
     substituted for that amount as follows for                                                                                 
              (1)  fiscal year 2012, $20,000,000;                                                                               
              (2)  fiscal year 2013, $30,000,000."                                                                              
                                                                                                                                
     Reletter the following subsection accordingly.                                                                             
                                                                                                                                
9:43:08 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
9:44:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON objected for discussion.                                                                                  
                                                                                                                                
9:44:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON pointed to Version  I, page 8, line 19, and                                                               
explained that  this defined  the revenue  sharing model  for $40                                                               
million  or $160  million.    He stated  that  this provided  the                                                               
security that  students who had  qualified for the  program would                                                               
receive funding  for the  length of their  contract, even  in the                                                               
event that the  program was no longer funded  by the legislature.                                                               
He stated  his opposition for  proposed Amendment 5,  which would                                                               
remove this guarantee from Version I.                                                                                           
                                                                                                                                
9:46:57 AM                                                                                                                    
                                                                                                                                
MS.  BARRANS  informed the  committee  that  EED was  opposed  to                                                               
proposed Amendment 5.                                                                                                           
                                                                                                                                
9:47:56 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
REPRESENTATIVE  SEATON  declared  that Version  I  established  a                                                               
revolving  fund  for  payment  to   students,  and  even  if  the                                                               
legislature decided  to not  appropriate funds,  the scholarships                                                               
which had  been committed to would  still be funded.   He pointed                                                               
out that proposed Amendment 5  would remove the funding, and that                                                               
ongoing  scholarships would  be dependent  on annual  legislative                                                               
appropriation.                                                                                                                  
                                                                                                                                
9:50:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRUITT asked  if passage of proposed  HB 104 would                                                               
increase  pressure on  the legislature  to provide  funding.   He                                                               
stated his  understanding that  annual fund  appropriations could                                                               
be to  any level.   He surmised that, as  it was not  a dedicated                                                               
fund,  the legislature  could  draw  from it  if  necessary.   He                                                               
suggested  that additional  projected revenues  for the  upcoming                                                               
year  could  be   deposited  in  a  dedicated   fund,  pending  a                                                               
constitutional change allowing dedicated funds.                                                                                 
                                                                                                                                
9:53:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  emphasized her  belief that  education was                                                               
one  of the  most  important expenditures  that  the state  could                                                               
allocate.   She declared that  proposed HB 104 was  essential "to                                                               
change the future to one that's  sustainable."  She said that she                                                               
would not support proposed Amendment 5.                                                                                         
                                                                                                                                
9:55:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON pointed  to other  funds, including  power                                                               
cost equalization (PCE) and municipal  revenue sharing which were                                                               
established with  a revolving aspect,  and had been  committed to                                                               
as a legislative priority.   He stated his opposition to proposed                                                               
Amendment 5.                                                                                                                    
                                                                                                                                
9:56:29 AM                                                                                                                    
                                                                                                                                
CHAIR DICK  pointed to a letter  of support from the  State Board                                                               
of  Education  and  Early Development.    [Included  in  members'                                                               
packets]                                                                                                                        
                                                                                                                                
9:56:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON, indicating her opposition  to proposed                                                               
Amendment  5,  suggested that  the  next  committee of  referral,                                                               
House Finance Committee, should discuss the funding.                                                                            
                                                                                                                                
9:56:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  stated that passage of  proposed Amendment                                                               
5 would negate  proposed HB 104, as the entire  focus of the task                                                               
force had been to identify a funding mechanism.                                                                                 
                                                                                                                                
9:57:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON maintained his objection.                                                                                 
                                                                                                                                
9:57:46 AM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representatives  Seaton, P. Wilson,                                                               
Cissna, Pruitt,  Feige, and  Dick voted  against it.   Therefore,                                                               
Amendment 5 failed by a vote of 0-6.                                                                                            
                                                                                                                                
9:58:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRUITT  moved to  report  CSHB  104, Version  27-                                                               
GH1893\I,  Mischel, 2/8/11,  as  amended, out  of committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There  being no  objection,  CSHB104(EDC) was  reported from  the                                                               
House Education Standing Committee.                                                                                             

Document Name Date/Time Subjects
New Needs Based Grant Program.pdf HEDC 3/21/2011 8:00:00 AM
HB 104
Funds under Revenue Sharing Model.pdf HEDC 3/21/2011 8:00:00 AM
HB 104
Advisory Program & On-time Course Offerings.pdf HEDC 3/21/2011 8:00:00 AM
HB 104
Use of Progressivity Funds.pdf HEDC 3/21/2011 8:00:00 AM
HB 104
Amerada Hess Funding Source.pdf HEDC 3/21/2011 8:00:00 AM
HB 104
CS HB104 ( ), Version I.pdf HEDC 3/21/2011 8:00:00 AM
HB 104